What to Expect: Anticipating and Adapting to Dynamic Economic Trends
Categories:
Project Leadership,
Continuous Learning,
Collaboration,
Servant Leadership,
Priorities,
Value,
Cultural Awareness,
project management office,
Project Failure,
Best Practices,
Project Delivery,
Metrics,
project management,
critical success factors,
Managing for Stakeholders,
execution,
Project Success,
Culture,
Project Dependencies,
Business Transformation,
Transformation,
Disruption,
Design Thinking,
Project Management,
Cost,
Risk,
Career Development,
Stakeholder,
Change Management,
Leadership,
Program Management,
Benefits Realization,
Complexity,
Consulting,
Decision Making,
Business Analysis,
IT Strategy,
Business Case
Categories: Project Leadership, Continuous Learning, Collaboration, Servant Leadership, Priorities, Value, Cultural Awareness, project management office, Project Failure, Best Practices, Project Delivery, Metrics, project management, critical success factors, Managing for Stakeholders, execution, Project Success, Culture, Project Dependencies, Business Transformation, Transformation, Disruption, Design Thinking, Project Management, Cost, Risk, Career Development, Stakeholder, Change Management, Leadership, Program Management, Benefits Realization, Complexity, Consulting, Decision Making, Business Analysis, IT Strategy, Business Case
By Peter Tarhanidis, Ph.D. In the ever-evolving landscape of corporate strategic planning, organizations face the perpetual dilemma of choosing between capital spending for growth—and optimizing operations for efficiency. Striking the right balance amidst economic trends and leveraging organizational strengths becomes paramount when navigating through strategic projects. Meeting shareholder and stakeholder needs, while aligning with the organization's mission, presents a constant challenge. To anticipate potential initiatives, project managers must consider global macroeconomic conditions and CEO outlooks. A preliminary assessment based on the United Nations World Economic Situation and Prospects and OECD Economic Outlook reports for 2024 reveals a projected global economic growth slowdown from 2.7% to 2.4%. This trend suggests a delicate balance between slow growth and regional divergences. Key considerations include:
Examining the corporate landscape, a survey of 167 CEOs in December 2023 indicated a confidence index of 6.3 out of 10 for the 2024 economy—the highest of the year. The CEO upsurge assumes inflation is under control, the Fed may not raise interest rates and instead reverse rates, setting up a new cycle of growth. Furthering the CEO agenda, McKinsey & Co. identified eight CEO 2024 priorities:
As project managers, navigating the uncertainty of economic shifts necessitates staying vigilant. The year may bring variables and predictions that impact the execution probability of strategic projects. Shifting between growth plans and efficiency drivers demands different preparation. To stay prepared, consider the following:
In an environment of perpetual change, proactive monitoring, adaptability and strategic collaboration will be key to successfully steering projects through the dynamic economic landscape. How else can you stay prepared as the demands shift on you and your team? References |
AI Disruption to Transform Project Success Rates
By Peter Tarhanidis, Ph.D. One of the impacts artificial intelligence has had is prompting a reconstitution of project management. Here I look to leading industry experts to explore the benefits to project management systems due to matured AI software; and the maturity of the project manager as a data- and fact-driven champion of business outcomes and innovation. This combination of advanced project systems performance and leadership competence will significantly transform project success rates. As a background to the current state of project management, HBR states that $48 trillion is invested annually in projects. The Standish Group notes that only 35% of projects are successful, and 65% of projects waste resources and have unrealized benefits. Additionally, Proofhub attributes project failure to firms that lack project management delivery systems; they are prone to miss targets and overspend. It noted that 67% of projects fail because project management is undervalued; 44% of all managers do not believe in the importance of project management software; and 46% of firms place a high priority on project management. Also noted: Utilizing a good software program reduces failure by 10%, and scope creep by 17%. More specifically, a PMI Learning Library article noted some reasons for project failure:
Maturing Systems Gartner Inc. analysts predict that by 2030, AI software—driven by conversational AI, machine learning and robotic process automation for gathering data, reporting and tracking—will eliminate 80% of all project management office tasks. Gartner identifies project management disruption in six aspects:
PwC envisions AI-enabled project management software will improve a project leader’s decision-making process across the following five key areas crucial to success:
PwC posits the advancements in project management software are an opportunity for firms and leaders that are most ready to take advantage of this disruption and reap the rewards. PM Competence AI’s capability to assess disparate sources of big data to obtain actionable insights arms project managers with improved decision-making competence throughout the project lifecycle. However, a challenge noted by PwC’s recent analysis of OECD data (covering 200,000 jobs in 29 countries) warns that AI’s job displacement effect will automate 30% of jobs involving administrative manual tasks by the mid-2030s. This indicates a clear need to upskill project manager competence in order to thrive in the future. In order to succeed, a firm’s culture of adaptability and lifelong learning is a cornerstone for shifting today’s project management roles into the future. They will need to expand competence in soft skills, business and management skills, technical and digital skills—all working in concert with each other. IAPM states project managers will face fundamental changes over the next 10 years with job descriptions and roles. It suggests AI will make logical analysis and decisions, allowing the PM to focus their main area of responsibility on creativity, resolving conflicts, and innovation. Lastly, with any transformation or disruption, one must consider the actions and obstacles—whether financial, management support, or workforce ability—to embrace and enact change. Here are some key considerations to reflect on:
Post your thoughts in the comments! References
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Supercharging an Organization’s Performance to Achieve its Mission
Categories:
Social Responsibility,
Portfolio Management,
Tools,
Best Practices,
Strategy,
Mentoring,
Metrics,
Career Development,
Stakeholder,
Innovation,
Change Management,
Leadership,
Lessons Learned,
Program Management,
Benefits Realization,
Complexity,
IT Project Management,
Teams,
Programs (PMO),
Communication
Categories: Social Responsibility, Portfolio Management, Tools, Best Practices, Strategy, Mentoring, Metrics, Career Development, Stakeholder, Innovation, Change Management, Leadership, Lessons Learned, Program Management, Benefits Realization, Complexity, IT Project Management, Teams, Programs (PMO), Communication
By Peter Tarhanidis, Ph.D. There is a dramatic increase in the strategies corporations implement to meet the needs of their stakeholders. Driving value from all parts of an organization and its functions may seem like repetitive exercises—and even feel more like a medieval gauntlet with only a few successful programs. HBR (2021) wrote that by 2027, about 88 million people will be working in project management—with economic activity reaching $20 trillion USD. Also noted: Only 35% of projects are successful, leaving immense waste of resources. There are many reasons projects fail. HBR (2021) states of the 70% of failed projects, and after exhaustive root-cause analysis across all industries, one can identify common themes such as undervaluing project management skills and methods, and poor performance. Yet organizations that apply project management methods recognized their performance had a 2.5 more times chance to be successful, and organizations can waste 28 times less resources. As such, when applied, the implementation of PM methods works. Yet in a world filled with a variety of project taxonomies, many organizational boards are now contemplating the need to implement environmental, social and corporate governance (ESG) and corporate social responsibility (CSR) programs. Forbes states the benefits of ESG and CSR initiatives include:
Therefore, to ensure success for ESG and CSR programs, an organization’s top leaders need to prioritize and align across all the organization’s businesses. Leaders can use the balanced scorecard to achieve this alignment, and can extend its use across the entire project portfolio. This theory was developed by Kaplan and Norton, which state the balanced scorecard method converts the organization’s strategy into performance objectives, measures, targets and initiatives. Linking the concept of cause and effect, the balanced scorecard covers four perspectives:
Marr (N.B.) reported over 50% of companies have used this approach in the United States, the United Kingdom, Northern Europe and Japan. One clear benefit has been to align the organization’s structure to achieve its strategic goals. In conclusion, applying project management methods and aligning an organization’s performance through the balanced scorecard can unlock ESG and CSR benefits that can supercharge a company’s efforts to achieve its mission. References |
Stop Patching: 5 Steps to Find the Core Problem
When facing a challenge in a project or during the evolution of your product, it's natural to look for quick solutions that can help you move forward. However, this approach can lead to "patching" the symptoms rather than addressing the root cause of the problem. In the context of agile software development, a good example of patching that I see trending is relying too much on the Scrum Master as a "Swiss army knife," where any problem is fixed by expecting them to compensate in some way. While it's true that the Scrum Master is a versatile member of the team, it's important to remember that their primary responsibility is to facilitate the Scrum framework, not to be a jack-of-all-trades. Instead of treating the Scrum Master as a catch-all role, it's crucial to find the core problem that's causing the challenge and address it directly. This may require some investigation, analysis and collaboration among the team members, but the payoff can be significant. By identifying the root cause, you can avoid repeating the same issue in the future, improve the overall quality of the product, and increase the team's productivity and morale. So, how can you find the core problem when facing a challenge? Here are some steps that can help: 1. Define the problem. Start by clarifying what exactly the challenge is that you're facing. Is it a technical issue, a communication problem, a misalignment of expectations or something else? Write down a clear and concise description of the problem that everyone can understand. 2. Collect data. Gather information about the problem by talking to stakeholders, reviewing documentation, analyzing metrics or conducting user research. The goal is to get a holistic view of the problem, its impact and its potential causes. 3. Analyze the data. Once you have collected the data, you need to make sense of it. Look for patterns, trends and insights that can help you identify the root cause. This may require some critical thinking, brainstorming or hypothesis testing. 4. Validate the hypothesis. Once you have a working theory of what's causing the problem, test it by gathering more evidence, conducting experiments or soliciting feedback from the team. The goal is to confirm or refute your hypothesis and refine your understanding of the problem. 5. Address the root cause. Finally, once you have identified the core problem, take action to address it directly. This may involve implementing a new process, fixing a bug, improving communication or changing the team's dynamics. Conclusion So, the next time you face a challenge, resist the urge to rely on the Scrum Master as a Swiss army knife and instead use their expertise to facilitate the process of finding the root cause. How do you deal with challenges? |
Enduring Through Uncertainty: Move Forward with Character
By Peter Tarhanidis, Ph.D. Never has the new year’s greeting “wishing you health, wealth, and prosperity” rang truer. Over the last several years, we have all lived through uncertainty. This year, we hoped to lurch out of a post-pandemic crisis into a new normal with a vibrant outlook…yet quickly staggered into a slipping economic uncertainty that sharply cut short the prospects of our envisioned “normal” state. JP Morgan’s 2023 economic outlook for the United States indicates a slowing growth rate, monetary tightening, and curbing inflation, while healthy consumer and business balance sheets could offer some growth prospects. The Conference Board observes longer-term geopolitical, environmental, labor, and inflation risks beyond 2023. Many organizations will ebb and flow within this shifting cycle. Organizations that are well-positioned will have a better chance to adapt to the external challenges of shifting global markets to meet customer needs. They must simultaneously find the agility necessary to mitigate the internal challenges of a reduced workforce, increasing costs for goods and services, climbing interest rates, and the overall health of a company’s finances and workforce. This will challenge organizations to stay focused and chart a path forward. This is reminiscent of Sir Ernest Shackleton and his crew of the Endurance, which embarked on a daring expedition from the UK to Antarctica and the South Pole in 1914. Along the voyage, the crew became stranded for over two years. The Endurance became trapped in the ice while the crew waited 10 months for spring and the warm weather to thaw them out—only to be horrified by shifting ice that damaged the ship’s frame, finally sinking her. To survive, Shackleton mounted three lifeboats to traverse 800 miles of open sea to reach help on South Georgia Island—then return to the makeshift camp to rescue all 27 men who suffered frigid conditions, hunger, chaotic seas, and mental distress. This journey is one of the greatest examples of leadership, grit, and epic survival. In order not to succumb to the current economic and global undertones, leaders must:
Project leaders have always been confronted with the likelihood of project failure—yet they have developed a track record of delivering results. Project leaders are adept at converting strategies into clear tactics, ensuring team and stakeholder alignment, and executing projects to achieve the goals. At the core of the project leader’s success are the character attributes of authenticity, trust, resilience, focus, and courage. What else can you do to support your teams and move forward during this year’s challenges? |